The Appraisal Process
A real estate appraisal is the practice of developing an opinion of the value of property, or what is commonly called “market value.”
Appraisals can vary by state, but there are three main parts to a home appraisal:
- The inspection – a licensed appraiser comes to the property and inspects it to determine fair market value
- Comparables – after the inspection, the appraiser researches similar homes in your area and compares recent sales to determine market value.
- Final appraisal report – using the data gathered from the inspection and comparables research, your appraiser issues a final appraisal report